There are many ways to invest in gold. Unlike other physical commodities, gold can be stored to have its value preserved or increased over time. One investment method unique is to buy it. You can buy gold bars, bullion and coins and store them in a safe place as an investment. No other commodity gives you this unique opportunity. Try to buy coal, crude oil or copper and store it!
One of the easiest ways to invest is to buy gold coins. Gold coins are better than gold bars as you can buy or sell them in smaller units. Most popular gold coins are the Gold Eagle (issued by the US Government), Gold Maple Leaf (issued by the Royal Canadian Mint) and Gold Krugerrand (issued by South African government).
In many countries, people buy gold jewelry for the dual purpose of adornment and investment. Now, gold certificates are a hybrid instruments that allow you to own physical gold without actually taking possession of it. As the name implies, these certificates certifies that you own a certain amount of gold which is usually stored in a safe location on your behalf by the authority that who issues the certificate.
Trading gold futures contract is what I like. Futures trading is interesting. You can profit from the volatility in the underlying assets. Futures trading is one of the direct methods to profit from the volatility in the gold market. But you need to know how to trade futures contracts if you want to do it. Futures trading is not difficult. There are some differences as compared to stock trading but you can learn futures trading by paper trading it first. The most popular futures contract is the COMEX Gold Futures. These futures contracts get traded on the New York Mercantile Exchange (NYMEX). COMEX Gold Futures are the most liquid gold contracts in the world. There are some traders who are specialists in trading gold futures.
The other gold futures contract is the Chicago Board of Trade CBOT Mini-Gold contract. This is a mini contract as a the name implies and allows retail traders or small investors to trad it. This contract gets traded electronically on CBOT electronic trading platform. Something good! This means that you can easily trade this contract. It is same as trading a regular contract though the contract size and the margin requirements may be small. If you are afraid of trading gold futures, no problem, don’t worry! You can invest in gold ETFs (Exchange Traded Funds). The most popular gold ETF is the StreetTracks Gold Shares. The other one is the iShares COMEX Gold Trust. Both are almost similar as both these ETFs track the spot prices of the gold so you can invest in any one of them.
Another method to get exposure to the gold is by investing in gold mining companies. A few popular gold mining companies are Barrick Gold Corporation, AngloGold Ashanti Limited and other. Newmont Mining Corporation is one of the largest gold mining companies in the world!
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